Cabinet has approved a comprehensive review to determine the full investment required to stabilise and expand the Northern Regional Electricity Distributor (Nored)’s infrastructure, as challenges in electricity supply continue in northern Namibia.
The assessment will be undertaken by the Ministry of Industries, Mines and Energy in collaboration with the Electricity Control Board (ECB) and Nored.
Information and Communication Technology Minister and government spokesperson Emma Theofelus said the review will focus on the rehabilitation and expansion of Nored’s distribution, transmission and substation infrastructure.
“Cabinet approved that the Ministry of Industries, Mines and Energy, in collaboration with the Electricity Control Board and Nored, undertake a comprehensive technical and financial assessment to determine the full investment required to stabilise, rehabilitate and expand Nored’s distribution, transmission and substation infrastructure,” she said.
The assessment will quantify the cost of stabilising and expanding the network, identify the main causes of outages and reliability issues, and evaluate the potential impact of investment on electricity tariffs.
It will also propose cost-effective solutions to improve network performance while maintaining affordability for consumers.
“The assessment should address the cost of substations and transmission constraints, while also ensuring affordability for consumers,” Theofelus said.
Cabinet also noted recent industrial action at Nored and the operational disruptions that followed, highlighting concerns over the utility’s governance and operational stability.
“Cabinet took note of the recent industrial action at Nored and the operational disruptions that occurred,” she said.
Nored has been facing ongoing financial and operational challenges, including unreliable power supply, liquidity constraints and service delivery failures across the northern regions.
The utility has also struggled with mounting debt, including significant obligations to NamPower, as well as revenue losses linked to underbilling.
Despite a turnaround strategy introduced in 2024, financial pressures have persisted into 2026, with ongoing concerns over the company’s ability to sustain operations and maintain reliable electricity supply.
Government said strengthening Nored’s governance and infrastructure remains critical to securing electricity supply in northern Namibia.
